There Are At Least “100 Ten-Baggers And Ten 100-Baggers” Stocks

Dear Shakti Khanduri, No body wait for miracle in 25th year after 24 year of poor performance.We try to invest in those compnies which we think are fundamentaly strong and can grow for next many years.This is based on certain assumptions.We remain invested only on those stocks for long period, which keep on out performing.We keep on shunting out non performers.Investing for very long term means that we remain invested only if company keep on performing.If you made a principle of holding of those stocks which are outperforming Sensex or NIFTY for trailing 3 and five years,and keep on shunting out underperforimg over 3 and 5 years,you will end with many multibaggers and your portfolio will have few stocks you may hold for 25 years.

 

Dear Way4wealth,
Its extremely difficult to predict a 100 bagger for sure .
Instead of that we should look for 10 bagger . If a 10 bagger is able to compound further, it will be massive gains for sure . So best way is hunt for 10 bagger having low PE and then decide .

As of now I am betting on Prima plastics, Pantaloon fashions, V2 retail(Bit risky bet), Vidhi etc.
Any of these who turns 10 bagger and keep performing consistently with comfortable PE, I will keep holding .

I have cupid 15 bagger and I am holding as of now.
NBCC which ran from 140 to 1200+ for me , sold partially on high and recently completely exited due to its high PE .
Ramco I sold partially when it tunrned almost 4 bagger and recently completely exited due to high PE.

So ideally if we have a multibagger and its performing , we should allow it to compound .
If 10 a bagger grows by 10% in a year its 100% gains .

Thanks & Regards,
Prashant

 

Yes. I have similar opinion.

 

please share your views on Lycos Internet...can it be a next multibagger..

 

But ,how to be sure the company will keep on growing uninterrupted for 25 years -sales wise, earning wise,intrinsic value wise-thus rewarding 50 or 100 or huge bagger return,that is the big question?

 

Another point which needs to be cosidered is how to be patient when a stock underperforms after seeing increase for some period in the hope that price rise will resume further. for many many years for multibagger returns. Is it not difficult to get that conviction as it needs to take call on future marcro economic scenario of the country and of the world , that is guided also by future political developments , which is unknowable.

 

This line of resoning leads me to form an opinion that to earn 30 or 50 or 100 bagger returns , one has to take call on very distant micro and marcro unknowable developments. Can one do it successfully ? I confess my inability .

 

We need to find out future leaders.What I have learned that generally at least 25% leadership will change after 25 years. After 100 years you may find almost new set of leaders.Now this life cycle has and will become more shorter and faster.So look for new emerging sectors,leaders. For reference you look at present leaders and analysis how they become leaders. Look for similar stocks in similar situations.Look into new breakthrough technological sectors.But it does not happen every month or every years.But it will certainly happen minimum average once in five years or twice in every decades.If we are still not able to identify,invest in present leaders,preferable look at young leaders and try to gauge their future life span of leadership.Still if you find difficult,go for present leaders ,which have some pricing power and some growth still in pipe line.Alternatively You keep a watch on new compnies being added to bse. 500.If you are genious,you may find your future keader for a very long ride If could not find ,you search for new compnies being added to A group or BSE 200 and find out ,it is now easier and you will identify if you are intelligent.Ride for long If not than look into new compnies being added to Sensex or NIFTY.You will find even if you are above average invester. If still not,than you will be better with present leaders as average invester.Some time stock are listed only after becoming a big leader and you can ride only after that.You will definitely find leader with this method, as future leaders can not skip this defined path.

 

Sir, this whole exercise is too difficult for me to follow.Hence this amount of multibagger returns is unattainable for me by this meathod-I confess.

 

You just study stocks entering in A group or BSE 200.Out of that you just figure out ,which are stocks which has created new Catagry or replacing and challenging new leaders,which are moving fast towards club 100,new faviourite of fund managers,which are following the same path which old leaders has followed.These are very few stocks .You will be clearly able to identify.Hardly there are five new stocks entering this club every year.Is it possible or not please communicate.

 

you are right. for 100 bags we have to go with unknowable small companies that have advantage of their business model.

 

I always love companies/management with X factor, which are innovative and ambitious .

Please find below story of two gentlemen who done/will do magic .
1: Omprakash Agrawal, 70 year old young man who stayed in US for 30 years, he is almost blind, came back to India just to take care of his company . Isn't it amazing ? He turned around Cupid .

2) Another Agrawal from V2 retail, A handicapped person, his company touched astronomical height of 1000rs in last bull run, busted, touched 10 rs.
He learnt lessons, stood again with courage, told market that he wont do old mistakes again and driving V2 again . Amazing, its less likely this man will fail .

3) Anotehr one is vidhi, vision 2020 is very clear and ambitious as mentioned in their AR .
If we look for such X-factor and ambitious management, they will definitely do wonders .

Thanks,
Prashant

 

Interesting posting!! Insightfull.!! THANKS . BUT..... YE DIL MANGE MORE!!!

 

Yes I have invested a big amount. My buy price is almost close to the current market price. I am looking forward to holding the stock in my core portfolio at least for the next 10 years. The real story will start after the results post the merger effect will start to come in. Expecting big returns in a decade. Can multiply multifold times from here. Fingers crossed.

 

Yes I have same opinion. Fortunately for me I accumulated the stock when it was just turning around after that devastating fall to single digit levels. I have great expectations from the management and am quite sure it would leave no stone unturned this time. Can be accumulated even now after the run up from single digits to the current level for the next 5 years. It can touch the same glorious heights again. Patience required.

 

stock has great potential. i think in 10 years it is surely a 10 bagger. congrats in advance.

 

I am somewhat disagree to it. We already have fashion and lifestyle e-commerce portals loke flipkart, zabong, myntra and so on. Recently aditya birla group launched abof.com and madura fashion and lifestyle already has trendin.com as e-commerce platform.

Do you all think the profits of brick-mortar stores will affect due to established e commerce players?

 

profits will be affected surely. but not in a noticeable way.
pr

 

Trendin.com belongs to Aditya Birla Group itself. Pantaloon is also now a part of Aditya Birla Group. So its not a competition to Pantaloon but its own e-commerce platform. Tendin will be a strong e-commerce channel for the combined entity. Add to this the stores of Pantaloons and Madura. After merger it will be the largest branded apparel company in India with a strong store network along with strong e-commerce presence.

After the merger the name of the combined entity is proposed to be changed to Aditya Birla Fashion Ltd. It will be the largest branded apparel player in India.

All the four major brands Peter England, Allen Solly, Van Husen and Louis Phillipe are either fully owned by Madura or are owned through perpetual right by Madura. So the uncertainities regarding the future ownership of these brands is very less.

After the merger even if we assume an EPS of Rs 7 for the combined entity still it is trading at very cheap valuation compared to other brand oriented companies like Page, Jubilant Food etc. Madura brands are growing at a very rapid pace. Also, over the next 3 years the company has planned to open approx 300 new stores. In future the cash flow position will improve significantly and Aditya Birla group will be in a good position to take care of the debts of Pantaloon Fashion and Retail.

In my personal opinion once the process of merger is complete and the integrated results the merged company which will be called Aditya Birla Fashion Ltd starts to flow, a lot of positivity will be built in the counter and it will attain the valuation it truly deserves.

Patience is the key. I personally expect huge returns in the coming 5-10 years. It can surely be a 10 bagger over a period of time. This is my personal opinion.